Coronet Phosphate Plant To Close PLANT CITY (WUSF) - The surprise announcement will end an operation that stretches all the way back to the turn of the last century. But the last few years have not gone well for the plant, which has been accused by neighbors of having polluted their drinking water.

Wells of homes around the Coronet plant have been shown to have pollutants such as arsenic and boron. Coronet says there's no scientific evidence proving it polluted neighbors' wells.

David Denner was named two days ago as the new executive director of Coronet Industries. He met yesterday with officials from the federal EPA and state Department of Environmental Protection.

DENNER: These ongoing discussions will lead to a resolution that insures Coronet Industries meets its responsibilities from an environmental standpoint. We will do the right thing for our employees, our neighbors and the state of Florida.

Denner says the environmental concerns played no part in their decision to close on March 31st. He says the cost of their main raw material, phosphate rock, has gone up by half in the last five years. And the price of natural gas had doubled.

That, combined with decreased demand for its animal feed products, has meant the company is not making any profit. Denner says they don't expect those market forces to change in the near future.

Denner says the company has no plans now to declare bankruptcy. That's a concern for state environmental watchdogs, who had to pump millions into keeping wastewater ponds at the Piney Point phosphate plant from overflowing after its corporate owners declared bankruptcy.

DENNER We're here today. We're doing it opening and honestly, and we're committing to doing the right thing for them. We're not walking away, as other industries or other companies have done. We are not Piney Point.

Coronet has a history of environmental violations. They include petroleum releases, air emissions and a spill of hydrofluoric acid, which is used to make animal feed pellets from phosphate rock.

Last year, DEP Secretary David Struhs wrote a letter to Coronet, saying consultants estimated it would take $45 million to close the plant. Company officials at the time said that number was "significantly overestimated."

Merritt Mitchell is a spokeswoman for the DEP's Tampa Bay regional office. She says the state's goal is to get the plant closed as quickly as possible.

MITCHELL: It really doesn't change anything at all. The company has pledged that they're going to meet their environmental obligations, and we expect that the company will commit the necessary resources and personnel and financial needed to assess the site, close it and accomplish long-term site management.

Mitchell says at this point in time, it's too soon to discuss any other eventual scenarios - such as if Coronet declares bankruptcy.

MITCHELL: That site has been under quite intense scrutiny in the last few months, and assessment is where we currently stand. So we'll continue to work with the U.S. EPA, and also our local health and environmental officials to determine what the best course of action is at this point.

About 90 people will lose their jobs when the plant closes. Denner says a skeleton staff will remain at Coronet. © Copyright 2012, WUSF